Question
Money market deposit account. Demand deposits. Certificates of deposit. Federal funds. Bankers' acceptances. Eurodollar deposits. NOW accounts. Wholesale CDs. Passbook savings. Repos. Commercial paper. Referring
Money market deposit account. Demand deposits. Certificates of deposit. Federal funds. Bankers' acceptances. Eurodollar deposits. NOW accounts. Wholesale CDs. Passbook savings. Repos. Commercial paper.
Referring back to the list in question 4, rank the liabilities according to funding risk, from the smallest to the largest.
Referring back to the list in question 4, rank the liabilities in the list according to funding cost, from the smallest to the largest. Based on your rankings, what is the relationship between funding risk and funding cost? What does this relationship make sense?
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